GREI – IGNOU Community College

Business Organization – I Semester Exam Jan 2010

(Subject Code – ECO – 01)

Part I

Answer any 10 questions Five from (a) and Five from (b) (1 X 10 = 10 Marks)

a. State whether the following statements are True or False

1) The sole objective of business is earning profit _______
2) Profession is a non economic activity_______
3) There is no element of risk in business________
4) Business is concerned only with the exchange of goods and services______
5) Sole proprietorship is most suitable for large scale business_______
6) Capital raising capacity of a sole proprietorship is unlimited_______

b. Fill up the Blanks

7) The liability of the sole trader is _________.
8) A company established by a special Act of parliament is called _______ Company
9) A partner who is not participating in the management of the firm is called ____
partner
10) A registered partnership agreement is called_________
11) The maximum number of members in a public limited company _________
12) In a government company ______ per cent of shares are held by the government

Part II

Answer any 10 questions (1 X 10 = 10 Marks)

1) Define a Active Partner. What is a Chartered Company?

2) Define a Partner. Who is a Nominal Partner?
3) What is the suitable form of organization if the risk element is high? Give Ex.
4) Read the following statements and find out who is the entrepreneur and who is not
a. A person sets up a business with an improved quality and usefulness of an
existing product or service
b. Mr. Srikanth is running a spinning. He purchased it recently for Rs. 8Cr
5) Define is Capital Employed? Give Ex.
6) What is Autonomy? What is a Corporate Body?
7) What is a Franchisee? Explain with an example
8) What is the difference between Publicity and Advertising
9) Distinguish between Middleman and Merchant Middleman.
10) Who is a Wholesaler? What are the advantages of being a Wholesaler?
11) What is a Discount House? What is Hire-Purchase Trading?
12) What are Shipping Bills and Shipping Orders?
 Part III

Answer any Four questions (5 X 4 = 20 Marks)

1) What do you understand by organization? What are the basic forms of business
organization?

2) A partnership firm has decided to expand its business which requires more capital and
expertise. Should it take more partners or convert it into a private limited company?
Giver your advice with suitable arguments.

3) Analyze the features of the following media of advertising

a. Radio
b. Newspaper
c. Television

4) Explain briefly the important characteristics of the following:

a. Departmental Stores
b. Mail order House
c. Super Markets

5) Write short notes on

a. Bill of Entry
b. Certificate of Origin

Part IV

Answer the following COMPULSORY question (10 X 1 = 20 Marks)

Give a brief description about the project you did during the semester. Explain why you
chose the project and what’s your learning from the same is. (Not exceeding 300 Words)